Notes to Accounts of EPIC Enzymes Pharmaceuticals & Industrial Chemicals Ltd.

Mar 31, 2012

1.1 Dues to Small Scale Industries:

Based on the information available with the company there is no amount owed by the Company to any micro small and medium Enterprises covered under the Micro Small & Medium Enterprises Development Act 2006. Hence no disclosure under Section 22 of the said Act is required.

1.2 DETAILS OF DEFERRED TAX ASSETS/LIABILITY:

No provision has been made for deferred tax asset/ liability in view of the losses and absence of certainty that the deferred tax asset would be realized.

1.3 SEGMENT REPORTING

a) The Company basically produced only specialty chemicals and the company has not undertaken any business during the year hence no segemntal reporting is required.

1.4 The Company has not written-back/writen back old creditors & Debtors during the year.

1.5 The Associate Company M/s. Mahakrishna Chemicals Ltd. is in the opinion of the Auditors constitute subsidiaries of the company. But the financial results of the same are not consolidated with the Company's accounts.

1.6 CONTINGENT LIABILITIES (Value in Lacs of

S.No. Particulars Current Year Previous Year

1.6.1 Custom duty which may arise if obligation for exports is not fulfilled against import or raw materials 91.76 78.92

1.6.2 Estimated amount of claims against the company and pending under disputed law suits (net of deposit in court) 28.61 28.61

1.6.3 Disputed liability to Bankers on account of interest 2.68 2.68

Total 123.05 110.21

1.7 The balances of debtors creditors and loans and advaces are subject to independent confirmation from the parties.

1.8 The previous year's figures have been regrouped / recast wherever necessary to make them comparable.

1.9 Depreciation has been provided only on assets used during the year.

1.10 Company may have to pay liability of feinchemie in foreign currency but the provision for the exchange rate fluctuation has not been considered in the books of accounts as per AS-11-effects of changes in foreign exchange rates.

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Mar 31, 2011

1.0 OTHER NOTES ON BALANCE SHEET AND PROFIT & LOSS ACCOUNT:

2.1 Dues to Small Scale Industries:

Based on the information available with the company, there is no amount owed by the Company to any micro, small and medium Enterprises covered under the Micro, Small & Medium Enterprises Development Act, 2006. Hence no disclosure under Section 22 of the said Act is required.

2.11 DETAILS OF DEFERRED TAX ASSETS/LIABILITY:

No provision has been made for deferred tax asset/ liability in view of the losses and absence of certainty that the deferred tax asset would be realized.

2.12 SEGMENT REPORTING

a) The Company basically produced only specialty chemicals and there is no export of goods during the year. Thus, identifiable business sector & geographical segment wise cannot be done.

2.13 RELATED PARTY DISCLOSURES:

2.13.1 List of related parties:

Associate Companies : a) Mahakrishna Chemicals Ltd.

Key Management Personnel / Relatives a) Mr. P. K. Mahajan - Managing Director

2.14 The Company has identified and written-back certain very old creditors worth Rs. & Debtors amounting to Rs.30/- & same has been written off as not realizable during the year.

2.15 The Associate Company, M/s. Mahakrishna Chemicals Ltd. is in the opinion of the Auditors, constitute subsidiaries of the company. But the financial results of the same are not consolidated with the Company's accounts.

2.16 CONTINGENT LIABILITIES (Value in lacs of Rs):

S.No. Particulars Current Year Previous Year

2.16.1 Custom duty which may arise if obligation for exports is not fulfilled against import or raw materials 78.92 67.85

2.16.2 Estimated amount of claims against the company and pending under disputed law suits (net of deposit in court) 28.61 28.61

2.16.3 Disputed liability to Bankers on account of interest 2.68 2.68

Total 110.21 99.14

2.17 The balances of debtors, creditors and loans and advaces are subject to independent confirmation from the parties.

2.18 The previous year's figures have been regrouped/recast wherever necessary to make them comparable.

2.19 Depreciation has been provided only on assets used during the year.

2.20 Company may have to pay liability of Feinchemie in foreign currency but the provision for the exchange rate fluctuation has not been considered in the Books of Accounts as per AS-11-Effects of changes in Foreign Exchange rates.

2.21 The Company has paid under One Time Payment of Term loan as proposed by IDBI at a full & final settlement of Rs. 292 Lacs as against the total outstanding amount of Rs. 432 Lacs. IDBI agreed to waive off the interest element from the total amount outstanding. The Company has made full payment of Rs. 292 Lacs and have adjusted the Interest waived and waiver of part amount on the term loan as confirmation of same is received from IDBI.

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Mar 31, 2010

1.0 CONTINGENT LIABILITIES (Value in lacs of Rs):

S.No. Particulars Current Year Previous Year

1.1.1 Custom duty which may arise if obligation for exports is not fulfilled against import or raw materials 67.85 59.00

1.1.2 Estimated amount of claims against the company and pending under disputed law suits (net of deposit in court) 28.61 39.71

1.1.3 Disputed liability to Bankers on account of interest 2.68 2.68

Total 99.14 101.39

2.1 The balances of debtors, creditors and loans and advances are subject to independent confirmation from the parties.

2.2 The previous years figures have been regrouped/recast wherever necessary to make them comparable.

2.3 Depreciation has been provided only for six month due to non-operation of the company.

2.4 Company may have to pay liability of Feinchemie in foreign currency but the provision for the exchange rate fluctuation has not been considered in the books of accounts as per AS-11- Effects of changes in foreign Exchange rates.

2.5 The Plant & Machinery worth of Rs. 912.02 lacs which has been identified as unusable and its recoverable amount is less than the carrying cost but the company has not provided the impairment loss in the books of accounts as per Impairment of Assets (AS-28)

2.6 The Company agreed for One Time Payment of Term loan as proposed by IDBI at a full & final settlement of Rs. 292 lacs as against the total outstanding amount of Rs. 432 lacs. IDBI agreed to waive off the interest element from the total amount outstanding. The Company has made full payment of Rs. 292 lacs but Rs. 432 lacs is shown outstanding in the balance sheet since no confirmation of the same is received from IDBI as on 31st March, 2010.

2.7 Schedules 1 to 21 form an integral part of Balance Sheet as at 31-03-10 and Profit and Loss A/c for the year ended that date.